Growth and Labor Income Risk withInelastic and Elastic Labor Supply

We discuss long-run growth in an economy which is subject toaggregate productivity shocks affecting all factors of production. Wedemonstrate that the presence of labor income risk unambiguously isan important determinant of long-run expected growth. The issue ofdynamic inefficiency of the underlying allocation is related to the sizeof the risk premium on capital return.[...]

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Year of publication:	2004-10-01
Authors:	Clemens, Christiane
Institutions:	Universität <Hannover> / Wirtschaftswissenschaftliche Fakultät
Subject:	Arbeitsangebot \| Endogenes Wirtschaftswachstum \| Endogenous Growth \| Einkommen \| income

Table of Contents
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1 Introduction
2 Benchmark: Inelastic Labor Supply
3 Distributive Disturbances
4 Elastic Labor Supply
5 Conclusion
References

Persistent link: https://www.econbiz.de/10005867611